Higher inflation a fear for markets as valuations not cheap, says Pacific Paradigm’s Punita Kumar Sinha

Punita Kumar Sinha, Managing Partner of Pacific Paradigm Advisors, believed that Indian market has more upside. However, higher inflation is a fear for equity markets as valuations are not cheap, she said.

Speaking in an interview to CNBC-TV18, she said, "The US bond yields have gone up, not so much inflation wise but it's also because the economic recovery is turning out to be strong and power listing keep rates low even now. Therefore, while the short end is going to be low, the long bond yields are going up because the economy is going to recover and that means there is a fear of inflation which is a real fear and that has caused some correction in the market.”

"For the remaining year we will see movements in rates, inflation numbers that will create volatility in the market especially given where valuations are. Valuations are not cheap like they were several months ago," said Sinha.